Response: a. declining profits—symptom.

Possible problems are a production process that is producing

defective products and causing a decline in sales or increased costs due to high maintenance of outdated
machinery. b. defective production process—problem. Possible symptoms are declining sales or increase
d COGS due to labor time for reworks. c. low-quality raw materials—problem. Possible symptoms are de
clining sales or increased COGS. d. shortfall in cash balance—symptom. Possible problems are loose acc
ounts receivable collections or over-purchase of inventory. e. declining market share—symptom. Possibl
e problems are producing the wrong product mix (i.e. producing unwanted items) or poor customer servi
ce. f. shortage of employees in the accounts payable department—problem. Possible symptoms are incr
eased discounts lost or increased errors in processing tasks g. shortage of raw material due to a drought
in the Midwest—problem. Symptoms are declining profits or unfilled customer orders. NOTE: It could als
o be viewed as a symptom of relying too heavily on one supplier. h. inadequately trained workers—
problem. Possible symptoms are higher COGS or decreased sales. i. decreasing customer satisfaction—
symptom. Possible problems are defective productionprocess or mean of poor distribution.

3. Systems Development and Implementation Kruger Designs hired a consulting firm three months ago t
o redesign the information system used by the architects. The architects will be able to use state-of-the-
art CAD programs to help in designing the products. Further, they will be able to store these designs on a
network server where they and other architects may be able to call them back up for future designs with
similar components. The consulting firm has been instructed to develop the system without disrupting th
e architects. In fact, top management believes that the best route is to develop the

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PROFESSORARLETTEPEOPLES

TAGSAccountant, Systems Development Life Cycle, Systems Development

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